Cloud Tech Firm Softchoice to Be Acquired in $1.3 Billion Deal
In a significant move, US-based World Wide Technology has agreed to acquire Softchoice Corp., a leading cloud technology firm, in an all-cash deal valued at $1.3 billion. This acquisition is expected to result in Softchoice being delisted from the Toronto Stock Exchange, just a few years after its initial public offering (IPO) in May 2021.
A Strategic Move for Both Parties
The deal, announced on Tuesday, will see Softchoice shareholders receive $24.50 per share in cash, a significant premium on its IPO price of $20 per share. TD Securities will oversee the transaction, which includes a termination fee of $49 million. Following the announcement, Softchoice shares surged by approximately 14%, marking its largest intraday gain since March.
A Legacy of Innovation
Softchoice has been a driving force in the information technology industry for over 35 years, earning a reputation as a “transformative player” in the field. World Wide Technology CEO Jim Kavanaugh praised Softchoice’s contributions, highlighting its commitment to innovation and customer satisfaction.
A New Chapter for Softchoice
This acquisition marks a new era for Softchoice, which has been at the forefront of cloud technology solutions. As part of World Wide Technology, Softchoice will leverage its expertise to drive further growth and expansion in the industry. With this deal, Softchoice shareholders can expect a significant return on their investment, while the company itself will benefit from the resources and expertise of its new parent company.
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